The dominoes continue to collapse in the crypto world with the turn of the crypto banks and lenders now. Over the summer, Crypto banks Celsius, Vauld and broker dealer Voyager have all suspended withdrawals and are in various stages of bankruptcy. These are the latest dominoes to fall in the crypto world as the price of bitcoin has dropped by 50% from last year and is down 69% from its all time high.
OCC (Office of Comptroller of Currency) which supervises national banks and agencies of foreign banks in US released their semi-annual risk report last week. The report presents key issues facing banks that “pose threats to the the safety and soundness of banks and their compliance with applicable laws and regulations”. The report presents an optimistic message – while the risk of downside growth is increasing due to tightening financial conditions and geopolitical uncertainty the banks continue to be financially strong having navigated the pandemic and are well capitalized to face the economic headwinds.
2021 saw a huge increase in price and popularity of Non-Fungible Token (NFT) which tracked the rise in cryptocurrencies and stock market and 2021 was the year that NFT’s became mainstream with celebrity endorsements. However in 2022, NFT’s have declined with cryptocurrencies and dropped in price and volume along with other asset classes as interest rates have risen. But there is wide potential use of NFT that has not yet been explored and it looks like NFT’s will stay as an asset class and a will have a major role in the digital asset ecosystem.
The latest US jobs report released on Friday by Bureau of Labor Statistics (BLS) showed that the US economy is close to regaining all of the jobs lost due to the pandemic with unemployment at 3.6% compared to 3.5% at Feb 2020
Background: This year prior to starting the war on inflation, the Fed published a paper asking for comments on a Fed coin or a CDBC
The $49 billion meltdown of the algorithmic stablecoin Terra USD (UST) coin and it’s lined token, Luna this month has shown the shaky grounds on which the lofty valuations of stablecoins have been built. Terra which has fallen in value from being pegged to USD to less than 5 cents and Luna which was one of the top 10 stablecoins in Jan is now worth less than 1 cent. The death of Terra and Luna has also led to a $300 billion decline in the crypto industry.